The introduction of new “Junk Fee” regulations by the US Federal Trade Commission in May 2025 created a stir in the hospitality industry, with hotels in the US and beyond rushing to adapt the way they display prices online.
NB: This is an article from Triptease
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And no one, not even major OTAs, is above the new regulations: in August 2025, Booking Holdings agreed to a $9.5 million settlement with Texas Attorney General Ken Paxton’s office over its junk fee practices.
The company was accused of using “drip pricing” by advertising low base rates for hotels and then adding mandatory charges like resort, amenity, or destination fees only at checkout. The lawsuit also alleged that Booking obscured its mandatory fees at checkout by grouping them with funds owed to the government.
Booking denied wrongdoing, but the settlement requires it to fully disclose all mandatory fees upfront to align with the Federal Trade Commission’s rule.
This is the largest Texas state-level settlement to date against an online travel agency for deceptive pricing, following earlier actions by the state against hotel giants such as Marriott, Hilton, and Choice. And while we’re in favor of holding OTAs to account, this is also a wake-up call to hotels in the US or with US customers: these rules are being enforced, and non-compliance could mean legal action and potentially steep fines.
How to make sure you’re compliant with the FTC’s ruling
While unlikely to result in payouts of over $9 million, fines or legal challenges would be a major headache for any hotel. Properties need to ensure that they’re fully compliant with all current regulations, and keep an eye out for any further developments. Here are the steps we’d recommend for hotels looking to avoid any complications.
Ensure that your advertised prices and your booking engine breakdown follow best practices
Ultimately this is all about the way prices are set up in your booking engine. So if you have any doubt at all about your pricing configurations and the rates you’re advertising, start from there.
Your booking engine should be able to outline the specific steps you can take to display prices in a compliant way. If in doubt, we’ve put together some key examples of how hotels are displaying their rates in a way that’s compliant with the new regulations.
